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Structured Settlement as an Investment Vehicle
You always hear people talking about the latest investment
vehicle they're using. It's water cooler talk, dinner table talk,
phone talk, it's everywhere talk. People are always looking for a
way to invest their money that might be a little 'different' from
what others are doing. Buying a structured settlement is one of
those options.
A structured settlement is where one party is awarded an
amount of money that is to be paid out over a certain period of
time. It is commonly the result of an insurance settlement or a
life settlement where the insurance company is required by a
judge to pay the victims an amount of money over time. The person
who is awarded the settlement then knows they can count on $X.XX
per month over the next Y years.
However, often people who are awarded structured settlements
don't want to receive the money over Y period of time. They want
the money NOW. And why not? Often they can make better use of the
money now than they could over 30 years, or sometimes they could
better their personal finances right now and forever if they had
a lump sum of cash right now for their structured settlement
payments.
In comes the investor. As an investor, an alternative vehicle
would be to buy someones structured settlement payments. That's
right, pay cash for structured settlement payments. For example,
Joe is awarded a $500,000 settlement from the insurance company
for an auto accident he was involved in. The company is going to
pay the $500,000 over the next 10 years, $50,000 each year.
However, Joe would be better off if he could just get $150,000
now and let someone else receive the payments over the next 10
years. As an investor, you could do this. Of course, in this case
you would have to have $150,000 in cash to buy the payments, but
then over the next 10 years you would make 333% return on your
initial investment of $150,000. Not bad!
I'm not saying it is an easy process to buy someone's
structured settlement payments. The process involves lawyers,
insurance companies, and judges, three things people tend to
dislike. However, there are companies that can help you. They'll
help you find all the resources you need to make a successful
investment.
Good Luck
John Jonas
CashStructuredSettlements.com can help you pay cash for
structured settlement payments.
MORE RESOURCES:
Father paved way for Street's debutDenver Post, CO - Nov 17, 2008... and Nixon Coming" — on Monday, at the Austin, Texas, offices of The James Street Group, a financial firm that specializes in structured settlements. ... |
Structured-Settlements - Google News
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